Once again, rumors have re-surfaced that Microsoft (NSDQ: MSFT) is going to launch a Zune phone—this time at CES in January. I’ve held off reporting on the rumor because I don’t think it is true, but more importantly, if it were true, it wouldn’t be that big of a deal.

The rumor has been around for years—well, since the Zune first launched. But it seemed it was squashed for good in October, when Microsoft’s own Steve Ballmer said the Zune software may become a component of Windows Mobile devices in the future, but not a standalone phone. A spokesperson elaborated: “Right now we’re happy to share the limelight.” Still, despite those statements, CNBC reopened the wound in November, when it raised questions about a device codenamed “Pink,” and Barron’s continued the speculation on Monday, reporting that Microsoft may use Ballmer’s Jan. 7 CES keynote to announce “a Microsoft branded cell phone.” The reports took on a life of their own and spread unchecked across the Internet until today when Gizmodo quoted Brian Seitz, Zune’s Group Manager as saying there’s “No Zune phone at CES.” Full story on mocoNews.net...